Foreign-Funded Banks Get Go Ahead on RMB Business
Submitted by Bill Belew on Thursday, 16 November 2006No Comment
RMB = Renminbi = Chinese yuan = money.
To meet its WTO obligations, China has agreed to let foreign-funded banks conduct RMB business for Chinese citizens.
Beijing has also agreed to remove regional restrictions and other limits on the foreign-funded banks.
In other words, a bank is a bank is a bank. They will all be the same.
However, Chinese branches of the foreign banks still will not be able to conduct RMB services unless a person were to deposit one million yuan ($127K) and get permission from the banking regulatory body.
China has 111 foreign financial institutions in 25 cities that currently offer RMB services. That number is going to go nuts pretty soon.
What do you think?
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